The Impact Of Financial Friction On The Total Factor Productivity Of Enterprises

Under the increasingly serious situation both at home and abroad,the high-quality development of the Chinese economy necessarily requires the acceleration of the promotion of Total factor productivity and the healthy development of enterprises to further guarantee the high-quality development of the economy.The growth of the corporate Total factor productivity can not be achieved without the support of the financial sector.In particular,with the deepening of the digital reform of the financial sector,the role of the Chinese financial system in supporting the modern economic system has become increasingly prominent,plays an increasingly important role in the evolution of corporate Total factor productivity.Therefore,the 14 th five-year plan clearly proposes to construct a new pattern of economic development,to strengthen the level of financial science and technology,and to strengthen our own new pattern of economic growth through scientific and technological innovation,to solve the problems of financial friction,guide the rational allocation of resources,and break down the institutional barriers to high-quality development.Therefore,it is of great theoretical and practical significance to systematically study the channel effects of financial digitisation on corporate Total factor productivity in the context of the urgent need to resolve financial frictions in China.First of all,this paper theoretically explores the impact of financial friction on corporate Total factor productivity and its mechanism,and introduces a heterogeneity model to deduce the hindrance effect of financial friction on corporate Total factor productivity.Furthermore,financial digitisation and financial frictions are added to the GJ model to explain how financial digitisation can mitigate the impact of financial frictions on corporate Total factor productivity.On the basis of mathematical derivation,financial friction is constructed from two dimensions of capital misallocation and financing constraint,and three dimensions of capital misallocation,financing availability and financing cost The digital development of finance is constructed from three dimensions: the development degree of Internet,Digital Finance and the digital development of commercial banks,and the quantitative monetary policy and the price monetary policy are selected as the sub-items of monetary policy,from the perspective of monetary policy control financial digital development to explore the policy level of change.Further,we use the panel data of3431 Chinese a-share listed companies in Shanghai and Shenzhen from 2011 to 2020 to test the channel effect and the mechanism of financial digitization.This paper empirically tests the results of theoretical model derivation using panel data at the level of listed companies.The conclusions are as follows: first,financial friction significantly hinders the development of corporate Total factor productivity;In the analysis of the dimension effect of financial friction,the increase of financing cost will have a negative effect on the Total factor productivity of enterprises,but the effect of capital misallocation and financing availability on the Total factor productivity of enterprises is not obvious,it is further found that the capital misallocation of manufacturing enterprises seriously hinders the development of enterprise Total factor productivity,and only a lag in the availability of financing can have a significant effect on the current enterprise Total factor productivity.Second,the channel effect of financial digitisation is studied,and it is found that financial digitisation can significantly ease the hindrance of financial frictions to corporate Total factor productivity.With the analysis of sub-dimensions,Internet Development Index,Digital Finance and Commercial Bank digital development also have the same effect.Third,by adding macroeconomic policies and analyzing the Galway adjustment effect,the empirical results show that quantitative monetary policies and fiscal subsidies can significantly enhance the channel effect of financial digitization development,the effect of price-based monetary policy and tax is not significant.The conclusions of this study provide an empirical basis for improving the saturation and integration depth of financial digital development,thus easing financial friction and promoting high-quality economic development.